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To: Roger A. Babb who wrote (5657)	1/25/2001 12:55:16 PM
From: McNabb Brothers	Read Replies (1) \| Respond to of 19633

Roger, You better get a new accountant for the tax law states $3000 married or not! Hank

To: Roger A. Babb who wrote (5657)	1/25/2001 1:11:19 PM
From: Arcane Lore	Respond to of 19633

From IRS Publication 544 (Note that the example uses a couple filing a joint return): [...] Treatment of Capital Losses If your capital losses are more than your capital gains, you must deduct the difference even if you do not have ordinary income to offset it. The yearly limit on the amount of the capital loss you can deduct is $3,000 ($1,500 if you are married and file a separate return). Capital loss carryover. Generally, you have a capital loss carryover if either of the following situations applies to you. Your net loss on line 17 of Schedule D is more than the yearly limit. The amount shown on line 37, Form 1040 (your taxable income without your deduction for exemptions), is less than zero. If either of these situations applies to you for 2000, complete the Capital Loss Carryover Worksheet in the instructions for Schedule D to figure the amount you can carry over to 2001. In 2001, you will treat the carryover loss as if it occurred in that year. It will be combined with any capital gains and losses you have in 2001, and any net loss will be subject to the limit for that year. Any loss not used in 2001 will be carried over to 2002. Example. Bob and Gloria Sampson sold property in 2000. The sale resulted in a capital loss of $7,000. The Sampsons had no other capital transactions. On their joint 2000 return, the Sampsons deduct $3,000, the yearly limit. They had taxable income of $2,000. The unused part of the loss, $4,000 ($7,000 - $3,000), is carried over to 2001. The allowable $3,000 deduction is considered used in 2000. If the Sampsons' capital loss had been $2,000, it would not have been more than the yearly limit. Their capital loss deduction would have been $2,000. They would have no carryover to 2001. [...] irs.gov